Campbell Res. shows profit in 1st quarter

A first-quarter net profit this year of $349,000 was recorded by Toronto-based Campbell Resources, compared to a loss of $4.6 million for the same period last year. Taking into account discontinued operations and extraordinary items, net income for the quarter was $349,000 compared to a loss of $14.2 million in 1986.

The first-quarter net income, while lower th an expected, marked the fourth consecutive quarter of profitability for Campbell.

(Campbell has changed its fiscal year, which used to run from July 1 to June 30, to a calendar-year basis.)

Revenue of $11.5 million for the first quarter was slightly higher than for the same period in 1986. Income generated from operations, after interest expense, was $2.5 million, compared with $980,000 for the same quarter last year.

During the first quarter of this year, Campbell brought two new gold mines into production in the Chibougamau, Que., camp, the Joe Mann and the S-3, effectively doubling the company’s total gold production (Campbell has two other gold-producing mines in the area). The Joe Mann mine is operated by Meston Lake Resources, which is 65% owned by Campbell.

The company produced 21,000 oz gold during the last complete fiscal year ending June 30, 1986, and 9,000 oz gold during the six months ending Dec 31, 1986.

For 1987, the company is forecasting a total gold production of 43,000 oz, and for 1988, 62,000 oz. Had the two new gold mines been in production at the beginning of 1987, the company calculates it would be producing at an annualized rate of 55,000 oz.

For its fiscal year ending June 30, 1986, Campbell reported a net loss of $16 million. For the 6- month period ending Dec 31, 1986, the company had a net income of $875,000.

In addition to its activities in precious and base-metal mining in the Chibougamau area, Campbell is active in coal production and sales through its U.S. group, Coal Corp. of America, Inc., and in asbestos production and sales through the lab limited partnership in Quebec. The company is also involved in metal and mineral exploration in Canada and Mexico.